CBT College International Business. Chapter 1

1. International Business Chapter 1 We live in a Global Economy Objectives: Distinguish between domestic and International business. Discuss the reasons why international Business is important Understand that international trade is not just a recent event [P.8-25]

2. The Foundation of International Business International Business Chapter 1-1 Objectives: Distinguish between domestic and International business. Discuss the reasons why international Business is important Understand that international trade is not just a recent event Global Domestic International Key Words

3. Coffee we drink Toys for our kids The Oil to make gasoline The cars we drive Cotton for clothing [we buy] International Business International Business Concept Chapter 1-1

4. Computers Soy beans Cars Corn Civilian aircrafts [we sell] International Business International Business Concept Chapter 1-1

6. International Business Concept International Business Anything can be traded Chapter 1-1 Trade Materials Parts Finished products Services Resources Knowledge

8. Homework No more than 2 pages. Please use Arial 12. History of International Business TIMELINE

11. Domestic Business Concept Domestic trade or Internal trade is the exchange of goods, services, and capital within a sovereign state's borders or territories. USA has the larges domestic business of the world. At least 189 domestic US companies are GLOBAL International Business Chapter 1

12. International Business Chapter 1 Domestic International 30.000 restaurants, 120 countries, different menus. Insurance company with 14,000 employees.

13. International Business Chapter 1 Think

14. How are you affected by international business?

15. How are you affected by IB? IB Technology Politics History What happens when new technology creates employment What happens when a government change the rules How historical events influence trade among countries We are all part of the IB strategy!

16. The Foundation of International Business International Business Chapter 1-2 Objectives: Describe basic IB activities Explain the components of the IB environment Importance of IB Rules Culture trade Key Words

17. International Business Chapter 1-2 Import & Export Concept PRODUCTS OR SERVICES BROUGHT TO PORT Korea exports to USA USA imports from Korea One can import/export tangible or non tangible goods, services, and even people. An import/export of a good occurs when there is a change of ownership from and International port to a domestic port.

18. International Business Chapter 1-2 Import & Export Concept Balance of Trade + - When the country exports more than imports When the country imports more and exports less

19. Trade Barriers Local rules Labeling requirements Restrictions Taxes, Tariffs & quotas Government relations Culture

20. International Business Chapter 1-2 Trade Barriers Examples Embargo Language *Natpe TV Imported steel (2002)

21. International Business Chapter 1-2 International Business Environment Climate, terrain, seaways, natural resources, agricultural products Language, Education, religion, values and customs, social relationships System, educational level, technology, industries Government, stability, IB policies Economy Political & Legal Factors Cultural & Social Factors Geographic Conditions IB Environment

22. International Business Chapter 1-2 International Business Environment International Business Environment Examples Doesn’t have a seaport Geographic Conditions IB Environment

23. International Business Chapter 1-2 International Business Environment International Business Environment Examples Don’t like to do business with a woman Cultural & Social Factors IB Environment

24. International Business Chapter 1-2 International Business Environment International Business Environment Examples Chavez changes his mind everyday! Political & Legal Factors IB Environment

25. International Business Chapter 1-2 International Business Environment International Business Environment Examples Mali literacy rate is the lowest Economy IB Environment

27. International Business Chapter 1-2 The Global Business World International Business Skills Key Words History knowledge Geography Foreign languague Cultural awareness Study a lot

28. International Business Chapter 1-2 The Global Business World The Global Citizen Concept International Business change the life of the people: Different products, more quantity Career choices Cultural exchange...

29. International Business Chapter 1-2 The Global Business World See you on wednesday